I want to get in RE but...

[Ryan A.]

Hi Everyone,

I’ve been lurking for a few months now and this is my first post here after trying to get a lay of the land. Apolgies if it’s long, just a lot on my mind.

About me:

- Live in the East Bay Area

- Wife and I are both 27 and make good money for our age I believe ($315k combined) with room to increase it in the coming years. Hoping that doesn’t come across as bragging, just want to be honest.

- Want to buy a house in either the East Bay or Sac in 2-3 years.

Now to my question:

- After all expenses and maxing out our Roth 401k’s, we currently still have ~$7,500 left over to save for our downpayment which is great, but fast forward 3 years down the road after we hopefully own a home, where should that extra money go? Either RE or mutual/index fund.

- I really would like to get into REI, but I'm having a hard time wrapping my head around taking on a lot of debt and potential worry when owning multiple homes and not just taking the 7-10% return over a 25-30 year period in the mutual/index funds.

- I'm also in the Bay Area so REI is tough from what I've read on here and at this point I don't feel comfortable investing out of state since I'd like to have a little more control and visibility into my properties. This could be my naivety talking here.

- I feel like if I were able to max out two 401k's (mine and the wife's) and then add another $7k each month towards, we'll be sitting pretty 25-30 years down the road and we wouldn't need to take on the risk of REI.

Would love any help or first hand experience if there’s anyone out there that has had a decision like this before!

Thanks ahead of time,

RA